Indonesia Stock Exchange fell 3 % on Thursday morning . The rupiah and bonds also fell , while following a general election ( election ) . Based on a quick calculation , support for the leading presidential candidate , Jakarta Governor Joko Widodo or Jokowi , is lower than expected .
Investors seem anxious presidential elections scheduled for next July will last up to two rounds . They also began to worry about the potential for political uncertainty will continue much longer .
In accordance quick count yesterday , the Indonesian Democratic Party - Struggle ( PDI - P ) only received 19 % of the vote . The proportion is still lower than the 25 % required to nominate Jokowi as president , without forming a coalition .
" We consider [ the election results ] as a disappointment . Whereas before the election , the stock rose and showed the political uncertainty estimates will subside , " said CIMB Securities analyst Erwan Teguh in a memorandum published on Thursday . Investors must be " turned more defensive , " he said ..
Composite Stock Price Index , which rose this year , finally fell 3 % . The rupiah , which this year featuring the best performance in Southeast Asia , fell 0.5 % to Rp11.340 against the U.S. dollar . The bond market weakened . Yields on benchmark 10 -year 0.02 points to 7.86% .
Observers of MNC Securities Edwin Sibayang , expressed investors may still be sold until May. At that time , they were waiting for the election results to the focus of the presidential election .
HD Capital analyst , Yuganur Wijanarko , said Thursday weakness is an opportunity to buy . He himself predicted this correction will not last long . " Market participants should think beyond wild expectations " that a party can win a majority vote .
Hundreds of millions of Indonesian people to vote on Wednesday , the fourth election since Suharto stepped down in 1998 . Preliminary results indicate the House of Representatives will remain fragmented . This condition will deepen opportunities in coalition building and political horse-trading , which has historically weakened the economic reforms and infrastructure . Way for foreign investors become less smooth .
" Historically , the result of the formation of a coalition government is not effective , because it is bound by the transactional policy -making process , " said Edwin .WSJ
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